El Salvador Assembly Approves Provisions to Expand Energy Access and Boost Investment

The Legislative Assembly of El Salvador has approved a decree establishing special and temporary provisions to support the Universal Energy Access Program, a government initiative designed to extend electricity coverage across underserved communities. The program aims to bring reliable energy to 8,756 families who currently lack access in their homes, while also ensuring supply to public schools and rural production projects.

The tax framework included in the decree encourages private investment in energy projects, with the goal of expanding access to electricity and stimulating social and economic development in high-poverty regions, including indigenous communities.

During the 76th plenary session, lawmakers also authorized the creation of special tax provisions for multi-client contracts between the Executive Hydroelectric Commission of the Lempa River (CEL) and both public and private entities, domestic and foreign. These agreements will enable scientific studies related to hydrocarbon exploration. Additionally, provisions were established for data license contracts between multi-client holders and data acquirers.

While the initiative received broad support, the VAMOS party withheld its vote. Party representative Claudia Ortiz acknowledged the transformative impact of electricity access, noting that it “radically changes the quality of life and the development perspective” for families. However, she argued that concerns remain regarding contractor selection rather than the decree itself.

The Universal Energy Access Program is part of El Salvador’s broader strategy to reduce inequality in basic services and drive progress in sustainable development. By prioritizing electricity access for rural and marginalized populations, the government aims to improve education, health, and productivity, while strengthening long-term energy security.